Motor insurance costs have become a major source of anxiety for UK motorists, with over a third (35%) of policyholders now afraid to make a claim for fear of pushing up prices, new research finds.
The analysis from CRIF – a global leader in credit and insurance information, analytics and solutions – reveals that UK drivers remain some of the most hesitant in Europe to use the insurance policies they are paying for.
The proportion of UK motor insurance policyholders worried about making a claim is above the European average of 31% and significantly higher than countries like Italy (18%). Only Ireland reported higher concerns (41%), putting UK drivers among the most concerned about insurance on the continent.
The findings build on CRIF’s research from last year, which found a third (33%) of UK policyholders felt motor insurance has become the most expensive it has ever been. Recent analysis from Defaqto found that motor insurance prices have started rising again after two years of falls, while data from the ABI highlights factors such as the cost of repairs having also increased.
As a result, just 13% of policyholders actually feel that the cost of insurance has stabilised or started to fall, according to CRIF’s data, while around a third (32%) say that motor cover still feels expensive, explaining the ongoing anxiety over insurance among UK drivers.
Motor insurance is now the most widely held form of insurance among UK adults (59%), ahead of home (53%) and home contents insurance (51%). Yet 39% of UK policyholders say that insurance costs, combined with recent rises in fuel costs, are together making driving unaffordable.
In response, more than four in ten (43%) policyholders want insurers to do more to improve premiums, specifically increasing their affordability and consistency. Almost a third (31%) say that insurers need to be clearer and more transparent about pricing and terms, while a quarter (25%) say they would be willing to share more of their data with insurers if it unlocked more affordable premiums.
Sara Costantini, Regional Director for the UK and Ireland at CRIF, said: “UK drivers are continuing to feel the squeeze on getting from A to B. With premium costs about to rise again, motorists are still feeling the pressure, to an extent that many are seriously concerned about having to claim on the cover they actually pay for.
“This is putting a major strain on the relationship between insurers and their customers, especially for a type of cover they cannot easily go without. This makes it all the more important that insurers rebuild confidence as part of efforts to get premium costs down.
“Smarter use of data and analytics can help achieve this, enabling insurers to price more accurately, identify financial stress earlier and give drivers the clearer, fairer motor insurance they are asking for.”
The research findings form part of CRIF’s 2026 Banking on Banks report series. The first report, launched in June, looks at the biggest financial pressures currently facing European consumers and businesses. The second report, due to be published later this year, will look at the financial services gap between consumers and businesses.
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